Here are three expenses you should be ready to pay for as a homebuyer.
Here are the three things you can expect to pay for once you have an accepted an offer on your home for sale:
1. Earnest money. You will be expected to put a deposit down to secure the offer on the home. It will typically be around 1% of the purchase price and will need to be in the form of a personal or cashier’s check in your name. Once we get to closing, that money will be deducted from the purchase price.
2. Home inspection. I highly recommend a home inspection even with a brand-new home. It will alert you to any issues about the house. A whole home inspection covers every major system in your house, along with the roof, foundation, and more. They will look for anything abnormal in the home.
A home inspection can cost anywhere from $350 to $500. There are additional inspections you can have as well, including radon, lead-based paint, and well/septic inspections. I highly recommend getting set up with a licensed professional to see what inspections you will need for your home.
3. Your appraisal. This is required by your lender and is non-negotiable. It will cost around $500, and you can expect to pay it up front, although some lenders will let you pay it at closing.
Once your offer is accepted on a home, prepare for these three costs. If you have questions for me about buying a home or anything else related to real estate, don’t hesitate to reach out via phone or email. I look forward to hearing from you.